The COVID-19 pandemic highlighted the importance of institutions and businesses adopting new technologies to improve their efficiency and competitiveness. However, many challenges remain, and not all countries are progressing at the same pace.

Despite an 8.21% growth, sub-Saharan Africa continues to be one of the regions with the lowest business digitalization rates worldwide. As of December 2022, only 27.65% of businesses had adopted digital solutions to enhance their efficiency, a slight increase from 19.44% in August 2020. In stark contrast, East Asia witnessed the most significant growth, with its digitalization rate soaring from 13% in 2020 to 54% in 2022, marking a 41% increase.

The World Bank, in its report “Global Digitalization in 10 Charts” published on March 5, attributed the slow adoption of digital solutions in sub-Saharan Africa, particularly among small and medium-sized enterprises (SMEs), to the low usage of computers and the internet. The report further highlighted the lack of skills, poor adherence to stringent cybersecurity and data protection regulations, and inadequate awareness of digitalization challenges among businesses as contributing factors.

The World Bank and the International Finance Corporation (IFC) disclosed that less than 7% of micro-businesses in sub-Saharan Africa use digital technologies, such as smartphones and computers, for their operations, while 71% believe they are unnecessary.

A study conducted in seven African countries and published in April 2023 revealed that of these 71%, approximately 35% claimed they lacked the knowledge to use these technologies. This underscores a digital skills gap that needs to be addressed or the need for digital entrepreneurs to develop technologies that align with existing skill levels. The remaining 35% cited cost as a barrier to technology adoption.

As African countries progressively step into the fourth industrial revolution, businesses must integrate digital solutions into their core strategies. Digital skills have become vital to nurture and maintain business activities in a rapidly evolving competitive landscape. This vision aligns with the African Union’s Agenda 2063, which emphasizes that accelerating digital transformation must infiltrate all economic sectors to sustainably bolster the growth of African countries.

Samira Njoya